Finding Funding, Part 1

Tips for writing a financing-friendly business plan

One of the primary purposes of a business plan is to help you
obtain financing for your business. When writing your plan,
however, it's important to remember who those financing sources
are likely to be.

Bankers, investors, venture capitalists and investment advisors
are sophisticated in business and financial matters. How can you
ensure your plan makes the right impression? These tips are
key:

Avoid hype. While many entrepreneurs tend to be gamblers who
believe in relying on their gut feelings, financial types are
likely to go "by the book." If your business plan praises
your idea with superlatives like "one of a kind,"
"unique" or "unprecedented," your readers are
likely to be turned off. Wild, unsubstantiated promises or
unfounded conclusions tell financial sources you are inexperienced,
naive and reckless.